Washington State Solar Incentives
Washington State is phasing out some of its incentives since PV systems have become more affordable, as the cost of solar modules has gone down and the efficiency has gone up.
Washington State law requires utilities to credit a grid-tied solar electric system of up to 100kW generating capacity for net excess power generation at the full retail rate. This means if your solar system generates more electricity than you use, the utility will credit your account. Solectrix engineers are fully conversant with requirements for grid interconnection and will help you on the road to energy independence. Each county and utility has a unique program and rules, so use the information below as a general guide.
Power Rate Incentive
Washington was the first US state to implement a statewide Renewable Energy Production Incentive. Currently:
- On systems up to 12 kW, state utilities will pay grid-tied photovoltaic system owners $0.10 to $0.16 per kWh for the electricity they produce (compared to their $0.05 to $0.08 selling price). Made-in-Washington solar panels earn a bonus on top of the base net-metering payment or $.02 – $.05. This payment is capped at $5,000 per year.
- On systems of more than 12kW, state utilities will pay $0.02 to $0.06 per kWh for the electricity they produce (plus the made-in-Washington bonus, where applicable). This payment is capped at $25,000 per year.
- The above incentive payments can be paid to entities that lease PV systems, whereas formerly, only property owners could receive incentive payments.
- There is a new concept of “Shared Commercial” size systems, where a group of five or more businesses can invest up to $35,000 each in a utility owned and operated PV system. These are larger systems of 1-5 megawatts.
US Tax Rebate
The IRS allow a 30% Residential Energy Efficient Property Credit for “qualified solar electric property costs” and “solar water heating property costs” (form 5695).